NAVIGATING JOB CRUNCH

Placements hit a wall as tech disruption and economic uncertainty resahape hiring dynamics across B-schools.

- Manoj Sharma

A STUDENT pursues a postgraduate degree or diploma from a B-school for two reasons-to get a highpaying job or become an entrepreneur. Most in the former category want a 'dream job' at multinational companies. All organisations need managers, after all. But the job market for entrants has hit a wall. The trend started in 2022 and continued in 2023; 2024, too, looks unpredictable.

In 2023, every B-school, from top to mid and lower level, struggled to place students. At IIM-Ahmedabad, which topped the National Institutional Ranking Framework (NIRF) for the 5th time in 2024, maximum earning potential (MEP) for one-year executive course this year dipped to a six-year low. The highest package, ₹54.8 lakh per annum (LPA), was 50% lower than 1.08 crore in 2023. It was lower than even the average highest MEP from 2018 to 2022 (70.56 lakh). Utkarsh Shukla, the PGPX recruitment secretary of IIM-A, says this year was especially challenging due to "tough market conditions." A total of 120 firms took part in IIM-A's post-graduate programme summer placement, a decline from 145 a year before. A total of 96 students got 145 "dream applications" (flexibility to choose sectors), down from 250 in 2023. Final placements for 2024 will happen in January-February 2025.

Aban Padung, placement coordinator at IIM-A, says evolving industry dynamics have shaped current challenges. "A layer of uncertainty can't be ignored. Economic conditions such as inflation and global disruptions impact hiring trends. They push companies to be cautious with their recruitment strategies," says Padung. Still, the country's top B-school has been resilient. "Even though there has been a contraction in some sectors, new ones are emerging. They present fresh opportunities." Of the 20 IIMs in India, IIM-A is part of the first generation of B-schools that rank on top. Other first-gen IIMS include IIM-Kolkata, IIMAhmedabad, IIM-Bangalore, IIM-Lucknow, IIMIndore, IIM-Kozhikode and IIM-Shillong.